Browse Forums Real Estate 1 Nov 03, 2014 11:35 pm I have a question about valuations and bank valuations in particular. I think bank valuers tend to get the property low by about 5-15% to give the bank room for a fire sale if needed. How much would you say bank valuers "usually" go under based on what later has become the market price? Re: Determine value? 2Nov 04, 2014 5:45 am 0%. I tend to think valuers try to value pretty much bang on. A LVR of 80% or better will cover the bank in case of a default and subsequent fire sale. A LVR of <80% has LMI which the bank would be able to use in such a case. Valuers decision can be audited/challenged and they are part of a professional body, their job is the value the property accurately, the banks job is to then decide if they'll lend you the money. Most of the time the valuers are a third party to the bank. Re: Determine value? 3Nov 04, 2014 6:05 am There is a difference between Cost and Value. You can have a high cost to build the 'Best House' in the neighbourhood but you won't get that cost reflected in the value. The prices of the other houses will bring the likely sale price, and thus the value down. From experience selling a fairly new house on an estate where building lots are still for sale can be problematic. Buyers are comparing your price with house and land packages on the same estate. (They don't think about the money spent on; site costs, upgrades, garden, etc, etc) The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Determine value? 5Dec 08, 2014 3:09 pm Valuation is an imprecise art, it depends on the quality and volume of research and the available data. In a rapid market (like sydney at the moment) the data they're using is at least 12 weeks old and that's a very long time. Different banks also give different instructions and you'll see one banks valuations often come in tighter than another's, even if it's the same Val firm. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is… 3 27416 They make the room much easier to clean for one, reflect more light (if light colour tiles are used), and you dont end up with dust on the top edge of tiles (cause most… 3 9647 The last home I lived in didn't have a pool and when i went to sell it the agents were not happy, even telling me to put one in to sell the place. The agents weren't happy… 2 4290 |